Consider a two country, two goods, single factor model with Öxed labor requirements. If a country A has an absolute advantage in both goods over country B, there cannot be a international trade between them.   1. true 2. false

Suppose Canada can produce cars at an opportunity cost of 2 computers for each car it produces. Suppose Mexico can produce cars at an opportunity cost of 8 computers for each car it produces. Indicate how both countries can gain from free trade.

In his discussion of the impact of Globalization, Mike Myatt asserted the following: "In today's market-place, conductinbg business internationally is as much of a defensive play as an offensive play." Futher elaborated on menaing of this sentance by clearly articulating his implications of a defensive versus offensive position.

Please examine the following set of panels. In this model, there are only two nations - Home and ROW - and each can only produce one item -autos. Assume that transportation costs are zero and that these nations have allowed free trade. Given these assumptions, what price will autos be sold for? In other words, what is the best estimate of the world price (Pw) for autos? 1 Pri $12 $11 $10 $9 SA ST Se S 54 $1 $2 O $3 O $4 $5 $6 O $7 1 Home Market for Autos 4567930 Quantity 2 $11 $10 50 SA International Market for Auto $12 511 $10 39 Se $7 KE Se 53 54 52 De 51 17 145471 910 S 52 Row Market for Autos Quantity 214 DO 74110 Quantity

According to the resource-based view, there are economic gains from international trade because some firms in one nation generate exports that are valuable, unique, and hard to imitate that firms from other nations find it beneficial to import. O True O False

Morocco and Tunisia both have Mediterranean climates that are excellent for producing/harvesting green beans and tomatoes. In Morocco it takes two hours for each worker to harvest green beans and two hours to harvest a tomato. Tunisian workers need only one hour to harvest the tomatoes but four hours to harvest green beans. Assume there are only two workers, one in each country, and each works 40 hours a week. a. Identify which country has the absolute advantage in green beans and which country has the absolute advantage in tomatoes. b. Identify which country has comparative advantage in which product. c. Initially each country used ½ of the workers in producing green beans and tomatoes. If each country specializes based on comparative advantage find an exchange mechanism so that both gain from trade.

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1-Analyze the following (2x2) matrices. Identify the countries having certain advantages. Moreover, specify the benefits of trade for both countries. A (2x2) matrix involves (2 countries exchanging 2 commodities or products) Matrix A Wheat (bushels/labor Cloth (yards/labor hour) hour) United States U.K. 3. (Numerical values reflect output per unit of input) a. Will trade occur??? Identify the country having the absolute advantage in wheat and the one having the absolute advantage in cloth. b. Identify the production possibility frontiers for both countries. c. Show me the gains of trade if we assume that the U.S. exchanges 6 units of wheat for 6 units of cloth.

Now suppose that if Zimbabwe uses all of its resources, it can produce 50,000 tons of metal ores or 100,000 delivery trucks (trading off at a constant rate).  Suppose that if South Africa uses all of its resources, it can produce 20,000 tons of metal ores or 80,000 delivery trucks (trading off at a constant rate).  What is the direction of trade (who exports what to whom)?  Be sure to give the opportunity costs of production of both goods for both countries. What is one potential price of metal ores in terms of trucks at which both Zimbabwe and South Africa would benefit from trade?  Rank the autarkic prices and the world price of metal ores from lowest to highest.

Please explain why the answer is false. Specializing in its comparative advantage and trading with other nations benefit a country in terms of its total output but not individuals when it comes to their wages.a.Trueb.False